The first step is always the toughest, but when expenses come up and you can pay them without a struggle, you will find the motivation to improve and continue as long as you keep your “why” in mind.
There is a difference between saving and investing. Usually, there is no a big return with saving. It is for short-term goals such as a wedding or your emergency fund and the money is saved in a savings accounts of fixed deposits. Investing, however, is a step you take when you want your money to start earning more money for yourself. This will be in products such as unit trusts, retirement funds, direct shares, etc.
Investment products get more complex, and the right product would be specific to your circumstances and needs, but a great long-term investment product is the Tax-Free Investment Account, which is readily available on many platforms such as EasyEquities where you can choose direct shares and an abundance of offshore unit trusts.
Financial knowledge is power and can buy you peace of mind. The journey to financial freedom starts with you. • Prof du Toit is an associate professor in the department of financial management at the University of Pretoria and financial accountant